Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow (FCF).

ALX Free Cash Flow Analysis

Free cash flow, a measure commonly used by analysts to assess a company's profitability, represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

The Free Cash Flow is calculated using a number of methods including using Operating Cash Flow. Following is the formula to calculate Free Cash Flow based on Operating Cash Flow.

Free Cash Flow = Operating Cash Flow - Capital Expenditures

Using above formula to calculate Free Cash Flow for Atlas Arteria Limited (ALX), the free cash flow value is 17.84M.

All amounts in AUD

Operating Cash
18.12M
Capital Expenditure
-277k
Free Cash Flow
17.84M

Atlas Arteria Limited has a positive free cash flow as per the latest annual Cash flow statement released by the company. Positive free cash flow is cruscial for the financial health of a company, which can be used to pay dividends, expand operations, and deleverage its balance sheet (i.e., reduce debt).

ALX Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Atlas Arteria Limited (ASX:ALX).

31 Dec 201731 Dec 201631 Dec 201531 Dec 2014
Net Income519.58M225.11M85.08M-50.56M
Depreciation36.67M36.67M36.67M36.67M
Change To Netincome-489.72M-333.57M-93.53M-11.78M
Change To Account Receivables15k17.87M-16.26M-799k
Change To Liabilities-48.43M75.02M-17.02M38.58M
Total Cash From Operating Activities18.12M-15.58M-41.72M-24.55M
Capital Expenditures-277k-277k-277k-277k
Investments147.78M261.33M158.75M43.9M
Total Cashflows From Investing Activities-1.07B261.33M158.75M43.9M
Dividends Paid-59.33M-4.18M-10.27M-33.57M
Net Borrowings450.53M450.53M450.53M450.53M
Other Cashflows From Financing Activities-36.97M-36.97M-36.97M-721k
Total Cash From Financing Activities944.9M-94.28M-82.44M-7.03M
Effect Of Exchange Rate3.78M6.51M673k145k
Change In Cash-100.68M157.99M35.27M12.46M